Japan's yen defense runs into the gravity of global rates
Japan reportedly intervened in the yen during Golden Week after it slipped past 160 per dollar, with a second suspected move in early May; the yen jumped briefly but subsequently weakened again. Analysts say such interventions offer only temporary relief against a sustained pull from a wide interest-rate gap with the U.S. and rising import costs, and IMF notes that Japan can only use a few more interventions before affecting its free-floating status; the BOJ faces a policy dilemma between raising rates to defend the yen and supporting growth.
